Kansai Electric Decides to Sue 5 Ex-Execs over Gift Scandal

Economy

Osaka, June 15 (Jiji Press)--Kansai Electric Power Co. <9503> decided Monday to sue former Chairman Makoto Yagi and four other former executives for damages of 1,936 million yen over a high-profile gift scandal.

The company plans to file the lawsuit against the five, also including former President Shigeki Iwane, former Chairman Shosuke Mori, former Executive Vice President Hideki Toyomatsu and former director Ryohei Shirai, with Osaka District Court as early as this week.

The decision was made at an extraordinary auditor meeting on the day, following an investigation into the scandal by a panel of outside lawyers, which was set up by the company in late March in response to shareholder requests for a lawsuit against those involved.

Meanwhile, the company will stop short of suing former and current auditors over the matter.

In the scandal, former and current Kansai Electric executives received a total of 360 million yen's worth of gifts from a former deputy mayor of the town of Takahama, Fukui Prefecture, which hosts a nuclear power station of the company. Kansai Electric has treated favorably firms linked to the former deputy mayor, including in its procurement.

[Copyright The Jiji Press, Ltd.]

Jiji Press